Something to lean on: The inner-city commercial sector may provide new opportunities for growth

Operators in the Building Project Development industry bring together the financial, technical and physical resources required to complete a property development. Upon completion, the property may be delivered to a client for subsequent use or sale, or the developer may retain equity interest and derive income via rental fees. Given that project timelines can be lengthy, there can be a significant time lag between the start of a development and the resulting impression on remuneration, contingent on the effect of external forces (e.g. volatility in economic cycles). Over the five-year period through 2019-20, revenue is forecast to increase at a compound annual rate of...read more.

Industry Statistics & Market Size
Revenue
£34.2bn
Annual Growth 15-20
7.4%
Forecast Growth 20-25
Profit
Employment
93,709
Businesses
38,852
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Prior to the EU referendum, strong economic conditions supported property price inflation
  • As funding and opportunities in construction increased, more players have entered the industry
  • Amid uncertainty and weak investment, near-term financial forecasts for developers are subdued
  • Industry Report - Industry Analysis Chapter

    Real estate development is a business process encompassing activities that range from the renovation and re-lease of existing premises to the purchase of raw land suitable for building developments and the sale of developed land. Real estate developers bring together the financial, technical, capital, labour and material resources required to complete a property development, although operators are not responsible for the physical construction of a given building. Upon completion, the building or buildings may be delivered to a client for subsequent use or sale, or the developer may retain an equity interest and derive income from rental charges. The...purchase to read more.

    Additional Insights for the Building Project Development Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Building Project Development Industry are

  • Access to the necessary amount of land/type of property
  • Ability to effectively communicate and negotiate
  • Having a high prior success rate (including completed prior contracts)
  • IBISWorld analysts also discuss how external factors such as Capital expenditure on dwellings and Business confidence index in the Building Project Development industry impact industry performance..

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    What's in this report

    What is the Building Project Development Industry?

    Firms in this industry bring together the financial, technical and material resources to complete residential and non-residential building projects. The industry does not cover the construction of buildings or project management services related to building projects.

    Industry Products
  • Self-owned developments
  • Third-party developments
  • Industry Activities
  • Developing residential building projects
  • Developing non-residential building projects
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Capital expenditure on dwellings
  • Business confidence index
  • Official bank rate
  • House price index
  • Retail sales index

  • Current Performance
  • Current Performance continued
  • Consistent opportunities
  • Market slowdown
  • Chart: Revenue Growth

  • Industry Outlook
  • Market resilience
  • Business strategies
  • Table: Building Project Development Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Building Project Development Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Supermarkets
  • Department Stores
  • Airports

  • Key Selling Industries
  • Commercial Building Construction
  • Residential Building Construction
  • Site Preparation

  • Products & Services
  • Self-owned developments
  • Third-party developments
  • Chart: Building Project Development Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Residential
  • Office
  • Public non-residential
  • Industrial
  • Other
  • Retail
  • Chart: Major Market Segmentation for the Building Project Development Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesSubcontractor paymentsOther
  • Chart: Cost Structure Benchmarking – Sector vs Building Project Development

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Building Project Development Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Building Project Development Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Building Project Development Industry
    Includes:
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Marketing (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Brownfield
  • Describes a site that has already been built on and is being considered for redevelopment.
  • Real Estate Investment Trust (Reit)
  • An organisation that owns and manages investment properties. REITs have been able to operate in the United Kingdom since 2007.
  • Tracker Mortgage
  • A variable mortgage rate whereby the value of repayments follows the movements of another rate (e.g. the official bank rate)
  • Vacancy Rate
  • The amount of real estate space unoccupied as a percentage of the total available space.
  • Yield Shift
  • The movement in net yield of a property asset, over a given period, weighted by net capital value.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Building Project Development market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Building Project Development:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Building Project Development market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Building Project Development, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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